Role of IT Executives on Their Firm’s Ability to Achieve Competitive Advantage Through IT Capability
International Journal of Accounting Information Systems, Forthcoming
Posted: 15 Jun 2011 Last revised: 20 Jul 2014
Date Written: June 14, 2011
Contrary to prior studies that have tried to examine the role of IT capabilities on firm performance in isolation from the role of senior IT executives, we propose that there is a positive relationship between the power of senior IT executives and the likelihood that the firm will develop superior IT capability. Furthermore, the contribution of IT capability to a firm’s competitive advantage is much stronger in firms with powerful senior IT executives as they are the driving force that may ensure the continuous renewal of IT capability. We develop a two-stage econometric model designed to test the contribution of senior IT executives on their firm’s ability to achieve superior IT capability, and the impact of co-presence of powerful senior IT executives in firms with superior IT capability on their firm’s competitive position. Empirical evidence based on a sample of large US firms strongly supports our hypotheses.
Keywords: Business Value of IT, CIO, IT capability, Structural Power, Tobin's q
JEL Classification: L25, M15, C33
Suggested Citation: Suggested Citation